malaysiahttp://www.desmogblog.com/taxonomy/term/389/all
enB.C. Ought to Consider Petronas’ Human Rights Record Before Bowing to Malaysian Company's LNG Demands http://desmog.ca/2014/10/23/bc-ought-consider-petronas-human-rights-bowing-malaysian-companys-lng-demands
<div class="field field-name-field-bimage field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://www.desmogblog.com/sites/beta.desmogblog.com/files/styles/blog_teaser/public/blogimages/DSC_0078.JPG?itok=4jCxRXMF" width="200" height="133" alt="Penan people of Sarawak blockade a Petronas pipeline" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>It should come as no surprise that <a href="http://www.cbc.ca/news/canada/british-columbia/petronas-lng-ceo-threatens-15-year-delay-to-b-c-project-1.2788975">Petronas expects <span class="caps">B.C.</span> to cave in to its demands</a> to expedite the process of approving its <a href="http://pacificnorthwestlng.com/">Pacific NorthWest <span class="caps">LNG</span></a> terminal and natural gas pipeline, lowering taxes and weakening environmental regulations in the process.</p>
<p>After all, Petronas has a well-established record of getting what it wants in the other countries it operates in, such as Sudan, Myanmar, Chad and Malaysia.</p>
<p>This week, the <span class="caps">B.C.</span> government did cave to at least one Petronas’ demands — <a href="http://thetyee.ca/News/2014/10/21/BC-Halves-Projected-LNG-Revenue/?utm_source=daily&amp;utm_medium=email&amp;utm_campaign=221014">cutting the peak income tax rate for <span class="caps">LNG</span> facilities</a> from seven to 3.5 per cent, thereby slashing in half the amount of revenue it’s expecting to receive from the liquefied natural industry. The government also introduced a standard for <a href="http://www.desmog.ca/2014/10/22/bc-new-lng-emissions-regulations-good-start-but-not-enough">carbon pollution for B.C.’s <span class="caps">LNG</span> industry</a>, which was hailed as a step in the right direction, but not enough.</p>
<p>In considering Petronas’ bid to develop B.C.’s natural gas resources, it is vital that we consider the company’s track record.</p>
<p>In 2011, I had the opportunity to witness the destruction caused by a Petronas pipeline, while working with the international <span class="caps">NGO</span> <a href="https://globalwitness.org/">Global Witness</a>. While staying with the semi-nomadic Penan people of Sarawak (Malaysian Borneo), I heard testimony of how the company had treated them in the course of constructing the pipeline.</p>
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<p>Although I had travelled to Malaysia Borneo to document the impact industrial logging was having on these people, the ongoing clearance for the Petronas pipeline emerged as an immediate concern.</p>
<p>Petronas has faced fierce local opposition to its <a href="http://www.bmf.ch/en/news/sarawak-geoportal-discloses-rainforest-damage-brought-about-by-petronas-gas-pipeline-in-malaysian-borneo">500 km pipeline</a> crossing Malaysian Borneo to feed its <span class="caps">LNG</span> terminal in Sarawak. Previously remote, semi-nomadic tribes of the Bornean jungle have now been violently thrust into an industrialized landscape that is foreign to them and hostile to their way of life. They resisted this invasion, erecting futile barriers made of sticks, and met bulldozers armed only with traditional bow and arrows. The project has been marked by secrecy, including details surrounding the location of the proposed pipeline, giving very little time for locals to voice their opposition through formal channels, or to scrutinize terms of the project.</p>
<p>The history of the Penan is a tragic one, marked by successive waves of industrial activity since the 1980s that has left them marginalized. Much of Sarawak has been converted to oil palm plantation, following decades of rapacious logging for valuable hardwoods for export. Increasingly they are no longer able to maintain their way of life, and this has made them all the easier to disregard in the construction of the Petronas pipeline.</p>
<p>I was struck by how wide a corridor had been cleared for the pipeline, and the brute force that had been employed in carving its way through the dense jungle. The clay-based Bornean soil, previously held together by the roots of majestic trees, eroded into muddy pools, and clumped heavily around my boots. I can’t help but think what Petronas’ pipeline though rugged northern <span class="caps">B.C.</span> will look like (<a href="http://pacificnorthwestlng.com/learn-about-pacific-northwest-lng/">Pacific Northwest <span class="caps">LNG</span> has contracted TransCanada</a> to build the pipeline), or how it will affect First Nations and local communities. </p>
<p><img alt="Petronas pipeline" src="/sites/beta.desmogblog.com/files/DSC_0137.JPG" style="width: 620px; height: 413px;" /></p>
<p><span style="font-size:11px;"><em>A Petrona pipeline cuts through the Sarawak jungle. Credit: Stefanie Wedeken.</em></span></p>
<p>It could be this “low bar” way of operating in developing countries that has led the <span class="caps">CEO</span> of Petronas, Shamsul Abbas, to conclude that <span class="caps">B.C.</span> is a “<a href="http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/petronas-ceo-warns-of-15-year-delay-to-bc-lng-project/article20942759/">high cost environment</a>” in comparison. “The proposed fiscal package and regulatory pace in Canada threatens the global competitiveness of the <span class="caps">PNW</span> <span class="caps">LNG</span> project,” Abbas wrote.</p>
<p>Petronas has also <a href="http://www.theglobeandmail.com/news/world/malaysias-petronas-confirms-dispensing-of-fuel-for-sudanese-military-aid-flights/article15097567/">defied a <span class="caps">UN</span> embargo against Sudan</a>, providing fuel to its military, which is known to bombs civilians in Darfur. Others have pointed out the many <a href="http://commonsensecanadian.ca/world-class-bc-lng-brings-third-world-deals-likes-petronas/">corruption and bribery scandals</a> that the company has been associated with in recent times.</p>
<p>This all leads to the question: does the <span class="caps">B.C.</span> government know how to use Google? Even a cursory background check would have revealed this company has a questionable track record. Either the <span class="caps">B.C.</span> government didn’t do its due diligence to find out who they were dealing with or they did, and ignored it, which is worse. Given the secrecy with which these and other <span class="caps">LNG</span> deals have been negotiated, this could very well be the case.</p>
<p>British Columbians have every right to scrutinize the companies that wish to exploit our natural resources, and to uphold the environmental and social safeguards that make this province a great place to live.</p>
<p><a href="http://www.cbc.ca/news/canada/british-columbia/petronas-lng-ceo-threatens-15-year-delay-to-b-c-project-1.2788975">Petronas has set a deadline of the end of October</a> for the company to reach an agreement with government officials on ways to reduce the cost of the project.</p>
<p>Natural gas is a finite, non-renewable resource that Canadians depend upon and that, despite what <a href="http://www.newsroom.gov.bc.ca/2014/10/bc-to-have-worlds-cleanest-lng-facilities.html">British Columbia’s Environment Minister Mary Polak may say</a>, is <a href="http://www.desmogblog.com/2014/10/20/natural-gas-bridge-fuel-excellent-political-solution-fails-climate-solution">not a global climate change solution</a>.</p>
<p>What’s the rush?</p>
<p><span style="font-size:11px;"><em>Main image: The Penan people blockade the Petronas pipeline in Sarawak. Credit: </em>Stefanie Wedeken.</span></p>
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<div class="field field-name-taxonomy-vocabulary-14 field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/directory/vocabulary/11362">Petronas</a></div><div class="field-item odd"><a href="/directory/vocabulary/6639">LNG</a></div><div class="field-item even"><a href="/directory/vocabulary/18503">Pacific NorthWest LNG</a></div><div class="field-item odd"><a href="/directory/vocabulary/1348">Sudan</a></div><div class="field-item even"><a href="/directory/vocabulary/3028">myanmar</a></div><div class="field-item odd"><a href="/directory/vocabulary/18504">Chad</a></div><div class="field-item even"><a href="/tags/malaysia">malaysia</a></div><div class="field-item odd"><a href="/directory/vocabulary/2229">carbon tax</a></div><div class="field-item even"><a href="/directory/vocabulary/939">climate change</a></div><div class="field-item odd"><a href="/directory/vocabulary/890">B.C.</a></div><div class="field-item even"><a href="/directory/vocabulary/603">british columbia</a></div><div class="field-item odd"><a href="/directory/vocabulary/18505">Global Witness</a></div><div class="field-item even"><a href="/directory/vocabulary/18506">Penan</a></div><div class="field-item odd"><a href="/directory/vocabulary/18507">Sarawak</a></div><div class="field-item even"><a href="/directory/vocabulary/18508">Malaysian Borneo</a></div><div class="field-item odd"><a href="/directory/vocabulary/5420">TransCanada</a></div><div class="field-item even"><a href="/directory/vocabulary/18509">PNWLNG</a></div><div class="field-item odd"><a href="/directory/vocabulary/18510">Shamsul Abbas</a></div><div class="field-item even"><a href="/directory/vocabulary/18511">Darfur</a></div><div class="field-item odd"><a href="/directory/vocabulary/10908">Bribery</a></div><div class="field-item even"><a href="/directory/vocabulary/5947">corruption</a></div><div class="field-item odd"><a href="/directory/vocabulary/14804">Mary Polak</a></div><div class="field-item even"><a href="/directory/vocabulary/6641">Bridge Fuel</a></div><div class="field-item odd"><a href="/directory/vocabulary/2800">natural gas</a></div><div class="field-item even"><a href="/directory/vocabulary/5133">fracking</a></div></div></div>Thu, 23 Oct 2014 19:00:00 +0000Peter Wood8686 at http://www.desmogblog.comHarper Government Approves Foreign Acquisition of Nexen, Progress Energy, Affirms FIPA Concernshttp://www.desmogblog.com/2012/12/07/harper-approves-foreign-acquisition-nexen-progress-energy
<div class="field field-name-field-bimage field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://www.desmogblog.com/sites/beta.desmogblog.com/files/styles/blog_teaser/public/blogimages/nexen_0.jpeg?itok=1vF51HKa" width="200" height="79" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Today Prime Minister <a href="http://www.theglobeandmail.com/globe-investor/nexen-progress-deals-approved-by-canadian-government/article6107548/">Stephen Harper announced the approval of two major acquisitions </a>of Canadian energy companies by foreign state-owned enterprises. The <a href="http://www.cnoocltd.com/encnoocltd/default.shtml">Chinese National Offshore Oil Company</a> (<span class="caps">CNOOC</span>) will commence the $15.1 billion takeover of <a href="http://www.nexeninc.com/">Nexen Inc.</a>, a Canadian company with major holdings in the Alberta tar sands. Malaysia's <a href="http://www.petronas.com.my/Pages/default.aspx">Petronas </a>will proceed with the purchase of <a href="https://www.progress-energy.com/">Progress Energy Resources Corp.</a>, a Calgary company with considerable shale gas plays in British Columbia, for $5.2 billion. Petronas has plans to construct an $11 billion liquified natural gas plant in Prince Rupert to prepare gas exports for Asia. </p>
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Prime Minister Harper announced the takeovers, which are steeped in controversy, in tandem with <a href="http://news.gc.ca/web/article-eng.do?nid=711489">new takeover guidelines</a> intended to address growing concerns of foreign ownership of Canada's resources by energy-hungry nations. He remained silent on the significance of the approval for <a href="http://www.desmogblog.com/2012/10/16/china-canada-investment-straitjacket-interview-gus-van-harten-part-2"><span class="caps">FIPA</span>, the Foreign Investment Protection and Promotion Agreement</a>, also known as the China-Canada Investment Treaty.</div>
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“Canadians generally and investors specifically should understand that these decisions are not the beginning of a trend but rather the end of a trend,” <a href="http://www.theglobeandmail.com/globe-investor/nexen-progress-deals-approved-by-canadian-government/article6107548/">said Mr. Harper</a>. The full meaning of that statement, however, remains to be seen. The Harper government's decision to ratify <span class="caps">FIPA</span> may mean deals done with China, like today's deal with <span class="caps">CNOOC</span>, will carry a new significance.</div>
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The government previously <a href="http://www.cbc.ca/news/politics/story/2012/05/25/pol-investment-canada-act-threshold-raised.html">raised the threshold for official review of foreign takeovers</a> from $330 million to $1 billion, signaling open arms to potential foreign investors with an eye on mega projects like the Alberta tar sands. However, today that threshold was returned to $330 million for state-owned enterprises.</div>
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“To be blunt, Canadians have not spent years reducing ownership of sectors of the economy by our own governments only to see them bought and controlled by foreign governments instead,” <a href="http://www.theglobeandmail.com/globe-investor/nexen-progress-deals-approved-by-canadian-government/article6107548/">Mr. Harper said</a>. </div>
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But Harper's assurances carry little weight after his administration <a href="http://www.thestar.com/news/canada/politics/article/1297743--amendments-to-omnibus-budget-bill-bill-c-45-fail-to-pass">forced through a second environmentally egregious omnibus budget bill</a> earlier this week. The combination of weakened environmental legislation with foreign management of energy development has many concerned that the country's natural resources, especially those with a high environmental footprint like the tar sands, will be squandered with little benefit to Canadians.</div>
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In addition, if Harper follows today's announcement with <span class="caps">FIPA</span>'s ratification, Canadians will have little control over the country's resource development and how that development is environmentally managed by Chinese companies.</div>
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<img alt="" src="/sites/beta.desmogblog.com/files/Picture%204_0.png" style="width: 300px; height: 373px; float: right; " /></div>
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Earlier this year ForestEthics Advocacy reported the <a href="http://forestethics.org/news/data-bloomberg-reveals-71-tar-sands-production-owned-foreign-interests">majority of the oil industry's profits are accruing out of the country </a>and that more than two-thirds of all tar sands production was owned by foreign entities who controlled nearly a quarter of the sector. </div>
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Tzeporah Berman, co-founder of ForestEthics <a href="http://www.canada.com/business/Majority+oilsands+ownership+profits+foreign+says+analysis/6599547/story.html">said at the time</a>, “the bottom line is Canada's policies need to be designed for Canadians, not just for big oil and foreign investors.”</div>
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She added, “Our data today is an important part of the conversation around who is benefiting from this dramatic push and expansion.” The tar sands are expected to nearly triple output in coming decades. Click<a href="http://forestethics.org//sites/forestethics.huang.radicaldesigns.org/files/FEA_TarSands_funding_briefing.pdf"> here for the full report</a>.</div>
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The conservative <a href="http://business.financialpost.com/2012/10/31/who-owns-the-oil-sands/">Financial Post recently responded</a> to “national hand-wringing over foreign ownership of the oil sands,” by claiming “Canadians are still the dominant operators and employers” of the sector. However, the Financial Post based their analysis on the “top 10 big producing projects” in the tar sands, according to current bitumen capacity. The paper added this small caveat to their figures: “nationally determined by that of major controlling shareholder, not nationality/incorporation of operating subsidy.”</div>
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<img alt="" src="/sites/beta.desmogblog.com/files/Picture%205_4.png" style="width: 550px; height: 164px; " /></div>
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<span style="font-size: 9px; ">Go to the <a href="http://business.financialpost.com/2012/10/31/who-owns-the-oil-sands/">Financial Post</a> for a larger view.</span></div>
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But that's just a convenient way of ignoring what today's announcement really means: the tides are changing in the Athabasca Tar Sands. </div>
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As the <a href="http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/how-much-of-canadas-energy-resource-lies-in-foreign-hands/article5937249/">Globe and Mail recently reported</a>, Canada is teetering on the edge of its ownership majority, from all angles. As the figure below illustrates, no matter how you slice it, Canada is just barely holding the reins of this rapidly accelerating industry.</div>
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<img alt="" src="/sites/beta.desmogblog.com/files/Picture%202_3.png" style="width: 550px; height: 299px; " /></div>
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As a part of today's landmark approval of a foreign takeover - the biggest in China's history - the Harper government announced future foreign takeovers will only occur in the tar sands under “<a href="http://news.gc.ca/web/article-eng.do?nid=711489">exceptional</a>” circumstances.</div>
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<span class="caps">NDP</span> energy critic <a href="http://www.cbc.ca/news/business/story/2012/12/07/cnooc-nexen-takeover.html">Peter Julian says that's a small comfort </a>given the government's decision to “rubber-stamp” foreign bids of this kind. </div>
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“We've seen complete confusion from this government, and today they're trying to sugar-coat something that I think will be a rather bitter pill for Canadians, the vast majority of whom feel that this particular acquisition is not in Canada's interests, and who want to see clarity around net benefit and who want to see above all public consultations on these kinds of takeovers,” <a href="http://www.cbc.ca/news/business/story/2012/12/07/cnooc-nexen-takeover.html">he said </a>on <span class="caps">CBC</span>'s Power <span class="amp">&amp;</span> Politics. </div>
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Earlier this year the Asia Pacific Foundation <a href="http://www.albertaoilmagazine.com/2012/01/will-chinese-investment-in-the-oil-sands-rattle-canadians/">reported</a> less than 20 percent of 3000 poll respondents felt “comfortable” with Chinese state-owned companies investing in Canadian firms. </div>
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Harper is feigning to respond to that concern:</div>
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“In light of growing trends, and following the decisions made today, the Government of Canada has determined that foreign state control of oil sands development has reached the point at which further such foreign state control would not be of net benefit to Canada,” his remarks read. “When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments.”</blockquote>
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But if the Harper government has demonstrated anything to Canadians, it is that Canada is for sale to the oil industry. Today's announcement only brings with it the concern that those oil companies may be operating with competing foreign interests in mind.</div>
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In October DeSmog conducted a series of interviews with foreign investment lawyer and <a href="http://www.desmogblog.com/2012/10/16/china-canada-investment-straitjacket-interview-gus-van-harten-part-2">trade deal expert Gus Van Harten</a>. At the time, commenting on future Chinese investment in the tar sands, Van Harten had this to say:</div>
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“I don’t think the government wants to see the whole oil patch Chinese owned, but I think it’s quite likely we’ll see significant portions of it Chinese owned, and once significant portions are Chinese owned, then you’ve also given lawyers who work for the Chinese investors this powerful tool to beat up on governments anywhere in Canada, you really frustrate the ability of Canadians to elect governments that are going to get more serious about the environmental consequences of the oil patch.”</div>
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In the end it will be the ratification of <span class="caps">FIPA</span> that will tell us the significance of today's announcement. </div>
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<div class="field field-name-taxonomy-vocabulary-14 field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/directory/vocabulary/10187">CNOOC</a></div><div class="field-item odd"><a href="/directory/vocabulary/10186">Nexen</a></div><div class="field-item even"><a href="/directory/vocabulary/11362">Petronas</a></div><div class="field-item odd"><a href="/directory/vocabulary/11363">Progress Energy</a></div><div class="field-item even"><a href="/directory/vocabulary/761">china</a></div><div class="field-item odd"><a href="/tags/malaysia">malaysia</a></div><div class="field-item even"><a href="/directory/vocabulary/2632">tar sands</a></div><div class="field-item odd"><a href="/tags/oil-sands">oil sands</a></div><div class="field-item even"><a href="/directory/vocabulary/11364">foreign ownership</a></div><div class="field-item odd"><a href="/directory/vocabulary/1285">investment</a></div><div class="field-item even"><a href="/directory/vocabulary/11365">acquisition</a></div><div class="field-item odd"><a href="/directory/vocabulary/11366">approval</a></div><div class="field-item even"><a href="/directory/vocabulary/1115">Stephen Harper</a></div><div class="field-item odd"><a href="/directory/vocabulary/8119">Harper Government</a></div><div class="field-item even"><a href="/directory/vocabulary/9380">ForestEthics</a></div><div class="field-item odd"><a href="/directory/vocabulary/10195">Peter Julian</a></div><div class="field-item even"><a href="/directory/vocabulary/4272">Tzeporah Berman</a></div><div class="field-item odd"><a href="/directory/vocabulary/10525">FIPA</a></div><div class="field-item even"><a href="/directory/vocabulary/10761">FIPPA</a></div><div class="field-item odd"><a href="/directory/vocabulary/11367">Investment straitjacket</a></div><div class="field-item even"><a href="/directory/vocabulary/10436">Gus Van Harten</a></div></div></div>Sat, 08 Dec 2012 01:21:41 +0000Carol Linnitt6740 at http://www.desmogblog.comMalaysia announces $25 million for solar technologyhttp://www.desmogblog.com/malaysia-announces-25-million-for-solar-technology
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://www.solar-powered.us/images/sun-power.jpg" align="right" height="116" width="155" />Good to see this large oil exporter<a href="http://news.yahoo.com/s/afp/20060830/sc_afp/malaysiaenergysolar"> investing big in renewable energy</a><a href="http://news.yahoo.com/s/afp/20060830/sc_afp/malaysiaenergysolar">.</a> An investment such as this not only recognizes the harmful effects of fossil fuel consumption, but according to this story it also makes economic sense. To quote:<br /><br /><blockquote>“Ahmad Hadri Haris, project leader for the photovoltaic or solar energy sector in Malaysia said it was the fastest-growing energy source in the world with expansion of 25-30 percent over the last 15 years.” </blockquote> And it seems many people around the world agree with Ahmad, see <a href="http://www.itp.net/business/features/details.php?id=4967&amp;category=">here,</a> <a href="http://www.azom.com/details.asp?newsID=6357">here</a> and <a href="http://www.engineerlive.com/power-engineer/renewable-energy/15385/worlds-largest-solar-array-exceeds-performance-goals.thtml">here</a> for examples. <!--break--> </div></div></div><!-- iCopyright Horizontal Tag -->
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<div class="field field-name-taxonomy-vocabulary-14 field-type-taxonomy-term-reference field-label-above"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/tags/malaysia">malaysia</a></div><div class="field-item odd"><a href="/tags/solar-power">solar power</a></div><div class="field-item even"><a href="/tags/photovoltaic">photovoltaic</a></div></div></div>Wed, 30 Aug 2006 18:30:30 +0000Kevin Grandia536 at http://www.desmogblog.com